From TEC’s perspective and based on our understanding of the industry, the utilities industry consists primarily of the following service providers: electric power generators, network operators, customer power retailers, natural gas, steam supply, water supply, and sewage removal. All of these business segments have common criteria such as a mass customer service department and billing process, remote service supply or power generation, and high cost of asset owning and maintenance. Also, a big part of the utility business is project based as well. Below are some challenges the industry faces:
• Traditional challenges: geographical spread and remote subdivisions and office lots; mass customer service that requires specific and unique business processes; global fuel price increases leading to the need to optimize transportation processes; and constant cost-cutting issues.
• Government regulatory challenges: electric power suppliers’ fragmentation to avoid monopolies and encourage competition in the utilities market; low emission and other green initiatives that have a high impact on current situations, future investments, and development trends; new local, country-wide, and international compliance requirements; elevated degree of competition.
• New challenges that divert huge amounts of resources and attract significant human efforts: new business technology and information technology that often work together; and a higher level of demand on customer service, correlated with higher customer expectations because of demographics and educational changes and advanced e-commerce service capabilities.
Despite the global and long-term trend of energy consumption, which is supposed to be higher during the next 10 to 15 years, the current economic situation is not helping the majority of businesses within this segment. With time, the industry will becomes less predictable and more risky, but information technology (e.g., a new generation of enterprise resource planning [ERP] systems that are seamlessly capable of facilitating and serving the growing requirements of utilities companies) will continue to play a significant and increasing role in the utilities companies’ businesses.
• Traditional challenges: geographical spread and remote subdivisions and office lots; mass customer service that requires specific and unique business processes; global fuel price increases leading to the need to optimize transportation processes; and constant cost-cutting issues.
• Government regulatory challenges: electric power suppliers’ fragmentation to avoid monopolies and encourage competition in the utilities market; low emission and other green initiatives that have a high impact on current situations, future investments, and development trends; new local, country-wide, and international compliance requirements; elevated degree of competition.
• New challenges that divert huge amounts of resources and attract significant human efforts: new business technology and information technology that often work together; and a higher level of demand on customer service, correlated with higher customer expectations because of demographics and educational changes and advanced e-commerce service capabilities.
Despite the global and long-term trend of energy consumption, which is supposed to be higher during the next 10 to 15 years, the current economic situation is not helping the majority of businesses within this segment. With time, the industry will becomes less predictable and more risky, but information technology (e.g., a new generation of enterprise resource planning [ERP] systems that are seamlessly capable of facilitating and serving the growing requirements of utilities companies) will continue to play a significant and increasing role in the utilities companies’ businesses.
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